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Recently, Ajit Jain, Warren Buffett’s insurance chief and a top executive at Berkshire Hathaway, made headlines for selling more than half of his stake in the company. In a new regulatory filing, it was revealed that the 73-year-old vice chairman of insurance operations sold 200 shares of Berkshire Class A shares, leaving him with just 61 shares. This move marked the biggest decline in Jain’s holdings since he joined Berkshire in 1986.
While the motivation behind Jain’s sales remains unclear, some experts speculate that he may have viewed Berkshire as being fully valued, especially considering the recent high price of the conglomerate. At the end of August, Berkshire traded above $700,000, reaching a $1 trillion market capitalization.
“This appears to be a signal that Ajit views Berkshire as being fully valued,” noted David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business.
Jain’s role at Berkshire has been instrumental in the company’s success. He has led the push into the reinsurance industry and played a key role in the turnaround of Geico, Berkshire’s auto insurance business. In 2018, Jain was appointed vice chairman of insurance operations and joined Berkshire’s board of directors.
Before it was announced that Greg Abel would succeed Buffett as the next leader of Berkshire, there were rumors about Jain potentially taking on the role. However, Buffett clarified that Jain had never expressed interest in running Berkshire and there was no competition between the two executives.
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